Fair Value Measurements

12 Months Ended

Mar. 31, 2011

Notes to Financial Statements [Abstract]

Fair Value Measurements

6.           FAIR VALUE MEASUREMENTS

Accounting rules for fair value clarify that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.  As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.  As a basis for considering such assumptions, the Company utilizes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 – Observable inputs such as quoted prices in active markets;

Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets measured at fair value on a recurring basis at March 31, 2011 are as follows (amounts in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Money market fund deposits	$	464,669	$	---	$	---	$	464,669
Marketable equity securities		26,861		---		---		26,861
Corporate bonds & debt		---		519,526		3,500		523,026
Government agency bonds		---		430,591		---		430,591
Deposit accounts		---		239,254		---		239,254
Municipal bonds		---		11,457		---		11,457
Auction Rate Securities		---		---		12,475		12,475
Total assets measured at fair value	$	491,530	$	1,200,828	$	15,975	$	1,708,333

Assets measured at fair value on a recurring basis at March 31, 2010 are as follows (amounts in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Money market fund deposits	$	206,376	$	---	$	---	$	206,376
Deposit accounts		---		285,754		---		285,754
Government agency bonds		---		389,394		---		389,394
Municipal bonds		---		157,705		---		157,705
ARS		---		---		37,237		37,237
Put option on ARS		---		---		1,814		1,814
Corporate bonds		---		394,856		---		394,856
Marketable equity securities		58,402		---		---		58,402
Total assets measured at fair value	$	264,778	$	1,227,709	$	39,051	$	1,531,538

For Level 3 valuations, the Company estimated the fair value of its ARS based on the following: (i) the underlying structure of each security; (ii) the present value of future principal and interest payments discounted at rates considered to reflect current market conditions; (iii) consideration of the probabilities of default, auction failure, or repurchase at par for each period; and (iv) estimates of the recovery rates in the event of default for each security.  The Company estimated the value of the put option on the ARS by evaluating the estimated cash flows before and after the receipt of the put option, discounted at rates reflecting the likelihood of default and lack of liquidity, or in the case of the payment of the par value to be paid by the broker at exercise of the put option, the counterparty credit risk.  The estimated fair values that are categorized as Level 3 as well as the put options on publicly traded stock could change significantly based on future market conditions. Refer to Note 5 for further discussion of the Company's investments in ARS.

The following tables present a reconciliation for all assets measured at fair value on a recurring basis, excluding accrued interest components, using significant unobservable inputs (Level 3) for the years ended March 31, 2011 and March 31, 2010 (amounts in thousands):

Year Ended March 31, 2011	Auction Rate Securities			Put Option on Auction Rate Securities			Corporate Debt		Total Gains (Losses)
Balance at March 31, 2010	$	37,237		$	1,814		$	---	$	---
Total gains or losses (realized and unrealized):
Included in earnings		138			(1,814	)		---		(1,676	)
Purchases, sales, issuances, and settlements, net		(24,900	)		---			3,500		---
Balance at March 31, 2011	$	12,475		$	---		$	3,500	$	(1,676	)

Year Ended March 31, 2010	Auction Rate Securities			Put Option on Auction Rate Securities			Corporate Debt		Total Gains (Losses)
Balance at March 31, 2009	$	46,800		$	4,026		$	---	$	---
Total gains or losses (realized and unrealized):
Included in earnings		(2,538	)		(2,212	)		---		(4,750	)
Purchases, sales, issuances, and settlements, net		(7,025	)		---			---		---
Balance at March 31, 2010	$	37,237		$	1,814		$	---	$	(4,750	)

Assets measured at fair value on a recurring basis are presented/classified on the consolidated balance sheets at March 31, 2011 as follows (amounts in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Cash and cash equivalents	$	464,669	$	239,254	$	---	$	703,923
Short-term investments		16,553		523,019		---		539,572
Long-term investments		10,308		438,555		15,975		464,838
Total assets measured at fair value	$	491,530	$	1,200,828	$	15,975	$	1,708,333

Assets measured at fair value on a recurring basis are presented/classified in the consolidated balance sheets at March 31, 2010 as follows (amounts in thousands):

	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets
Cash and cash equivalents	$	206,376	$	285,754	$	---	$	492,130
Short-term investments		58,402		638,891		24,900		722,193
Long-term investments		---		303,064		14,151		317,215
Total assets measured at fair value	$	264,778	$	1,227,709	$	39,051	$	1,531,538

Financial Assets Not Recorded at Fair Value on a Recurring Basis

The Company's non-marketable equity and cost method investments are not recorded at fair value on a recurring basis.  These investments were recorded at fair-value as of April 8, 2010, the date of the SST acquisition, and are monitored on a quarterly basis for impairment charges.  The investments will only be recorded at fair value when an impairment charge is recognized.  These investments are included in other assets on the condensed consolidated balance sheet.  See further discussion of non-marketable investments in Note 5.